MGT 201 11th Edition Lecture 22 Outline of Last Lecture I. Start chapter 19: managing quality & performanceII. Discuss managerial controlIII. Discuss budgetsOutline of Current Lecture IV. Continue with chapter 19V. Go over ratiosVI. Discuss control and Six SigmaCurrent LectureChapter 19: Managing Quality and Performance The 10-k report is required by the SEC Liquidity ratios- indicate a company’s ability to pay short-term debts Example: current ratio Leverage ratios- show the relative amount of funds in the business supplied by creditors andshareholders; meet long-term financial obligations Example: debt-equity ratio Profitability ratios- indicate management’s ability to generate a financial return on sales or investments; rate of return from capital (how efficiently a firm has used its capital to earn a return) Example: return on total assets Activity ratios- measures internal performance with respect to key activities defined by management Example: inventory turnover, conversion ratio Hierarchical (bureaucratic) controls- the monitoring of behavior through rules, policies, reward systems, and written documentation Decentralized control- based on values and assumptions; rules are only used when necessary Total Quality Management (TQM)- infuse quality into every aspect of the business, all day-to-day activities The Rule of Six Sigma- quality program designed to reduce defects, lower costs, save time, and improve customer satisfactionThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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